Proposed by Councillor Stonard and seconded by Councillor Waters
This year’s provisional local government finance settlement for Norwich has resulted in a further significant deterioration in the council’s funding position with a 9% reduction in core spending power for 2016/17– 2017/18. Only 12 local authorities have had a larger reduction.
Over the full spending review period to 2019/20 Norwich will suffer a reduction in core spending power of around 15.9% with only three councils in a worst position.
This deterioration in funding is a direct consequence of the loss of Revenue Support Grant and New Homes Bonus which required the council to find £30 million recurring revenue savings since 2010.
Council RESOLVES to:-
1) note with dismay:-
a) that it calculates the actual core spending power reduction over the full spending review period will be closer to 18.7%
b) the following effects of changes to New Homes Bonus announced in the Provisional Local Government Finance Settlement:-
i. The introduction of a 0.4% baseline for growth, below which no New Homes Bonus payments will be awarded. For Norwich this means an award of just 4% of our growth or just 11 new properties of 337 delivered!
ii. The broader impact across the country - 36 authorities will now receive no new New Homes Bonus reward for 2017/18 despite delivering a net increase of nearly 8,000 new homes between them.
iii. The changes to New Homes Bonus provides no incentive to some local authorities to build housing, and might delay building to maximise delivery above 0.4% to generate a reasonable level of New Homes Bonus the delivery of sustained, crucially needed, planned housing development.
2) ask the Leader of the Council and the Portfolio holder for Resources to write to:-
a) the Secretary of State for Local Government, asking him to :-
i. entirely remove the baseline growth threshold for New Homes Bonus
ii. reward councils for the number properties that are built rather than on the council tax banding of those properties
iii. find a national solution for adult social care, rather than shift funding from New Homes Bonus which impacts negatively particularly on District Councils and on investment in much needed housing.
b) other relevant ministers, Norwich MPs, the Local Government Association and the District Councils Network asking them to also lobby the Secretary of State accordingly